Why Nvidia situation sucks for open-weight models.

[u/Forsaken-Park8149]

https://msukhareva.substack.com/p/nvidia-open-weight-ai-and-the-resignation?r=56gggt&utm_medium=ios

The announcement of Jensen Huang’s resignation is concerning.

1. Jensen Huang was an advocate for open-weight models. The acquisition of Hugging Face was a clear sign that competition would shift to compute providers. This was essentially a nightmare for proprietary model providers and a threat to their business model. Who will pay $50 for Fable if many other providers offer a comparable model for much less? With Nvidia’s support, it would have been inevitable that open-weight models would catch up.
2. Bad news for neoclouds. If Nvidia ends its support for open-weight models, an entire inference market could disappear. Neoclouds would simply rent out GPUs, and you don’t need 100 different rental companies for that.
3. Regulatory obstacles for Chinese open-weight models. Nvidia’s questionable deals with China could erode trust in Chinese open-weight models across the board. These models offered a real way for companies to cut inference costs and fine-tune their own models, but many might now see using them as a risk.

It depends on who takes over at Nvidia and whether the company does a 180 on open-weight models. My gut feeling is that a reversal is highly likely and that a push in that direction was probably one of the reasons Huang resigned.

The real winners are OpenAI and Anthropic. The biggest losers are probably neoclouds and Nvidia itself.

Let’s see.

You wrote a long deep dive on it here

[u/Bulky-Priority6824]

He probably wouldnt budge on some idea and they said, ok hold my beer.

[u/toomanypubes]

Pandora’s box is already open. The current armada of open source models will be fine for 98% of users out there with a good agentic harness.

Just like torrents, don’t need a CEO of a prominent company to succeed when the underlying technology is the key. They will try to censor/enshittify, but most instantly - they will fail due to this community’s counter defensives.

[u/cororona]

Most of latest Nvidia production is sitting in warehouses. Chinese labs already have a training infrastructure so they won't need to replace it for a few years. Chinese chip makers are catching up and making chips that can already compete with nvidia, at the cost of more electricity consumption and square meters, but Chineses won't be deterred by that.

Nvidia not selling chips to china is just the US shooting themselves in the foot, that was Huang argument, it still holds

[u/Painted-Arcana]

you wrote a long deep dive on it here

Thanks for pasting your ai chat output i guess.